Correlation Between Nordinvestments and Lollands Bank
Can any of the company-specific risk be diversified away by investing in both Nordinvestments and Lollands Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nordinvestments and Lollands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordinvestments AS and Lollands Bank, you can compare the effects of market volatilities on Nordinvestments and Lollands Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nordinvestments with a short position of Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordinvestments and Lollands Bank.
Diversification Opportunities for Nordinvestments and Lollands Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordinvestments and Lollands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordinvestments AS and Lollands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lollands Bank and Nordinvestments is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nordinvestments AS are associated (or correlated) with Lollands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lollands Bank has no effect on the direction of Nordinvestments i.e., Nordinvestments and Lollands Bank go up and down completely randomly.
Pair Corralation between Nordinvestments and Lollands Bank
If you would invest 123.00 in Nordinvestments AS on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Nordinvestments AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordinvestments AS vs. Lollands Bank
Performance |
| Timeline |
| Nordinvestments AS |
| Lollands Bank |
Nordinvestments and Lollands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordinvestments and Lollands Bank
The main advantage of trading using opposite Nordinvestments and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordinvestments position performs unexpectedly, Lollands Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lollands Bank will offset losses from the drop in Lollands Bank's long position.| Nordinvestments vs. Donkeyrepublic Holding AS | Nordinvestments vs. MapsPeople AS | Nordinvestments vs. Dataproces Group AS |
| Lollands Bank vs. Dataproces Group AS | Lollands Bank vs. cBrain AS | Lollands Bank vs. ALK Abell AS | Lollands Bank vs. ChemoMetec AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |